Chapter 1 3
Introduction 3
Importance of Retailing 4
Economic Justification for retailing 4
GENERAL SERVICES 5
Facilitating Services: 6
Chapter 1 3
Introduction 3
Importance of Retailing 4
Economic Justification for retailing 4
GENERAL SERVICES 5
Facilitating Services: 6
Overview of Retail Sector 8
Summary 9
Chapter 2 10
TYPES OF STORES 10
Major Types of Retail Stores 10
Department Stores 10
Classification of Department Stores 11
Location of Department Stores 12
Future of Department Stores 14
Super Markets: 14
Advantages of supermarkets 15
Limitations of Supermarkets 15
Discount Houses 16
Chain Stores or Multiple Shops 16
Advantages of chain stores or multiple shops 17
Limitations of chain stores or multiple shops 17
Non-Store Retailing 18
Direct Selling 18
Advantages of Direct Selling 19
Limitations of Direct Selling 19
Online Retailing: 21
Automatic vending 22
Direct Marketing 23
Franchising 24
Summary 25
Chapter 3 26
RETAIL STRATEGY 26
Overview: 26
Function of a strategy 26
Retailers classified by marketing Strategies 26
OPERATING EXPENSES AND PROFITS 28
COMPETITIVE ADVANTAGE WITH SPECIAL REFERENCE TO PHYSICAL FACILITIES 28
LOCATION 29
DESIGN 29
LAYOUT 29
ASSESSING COMPETITORS CURENT STRATEGIES 29
TECHNOLOGY STRATEGY 31
THE RISE AND RISE OF DOLLAR STORES - Effective StrategiesJagat J Saikia
In the American retail landscape, Dollar stores are ubiquitous and are growing into greater prominence for both shoppers and brands. Dollar Stores are typically those retail chains that sells a wide range of goods at meager prices, typically employing a Single Price Point strategy where each item costs a dollar or less. Dollar stores are poised to generate 94.2 Billion Dollars in the United States alone - with Dollar Tree and Dollar General being the predominant players. In the past, there were image issues where only a specific section of low-income families would frequent these dollar stores for their shopping needs. However, a shifting focus on service, value, and a unique assortment of products that meets the needs of a growing spectrum of shoppers had added to the tremendous growth potential.
The document provides an executive summary and introduction about organized retail stores in India. It discusses that organized retail stores are market leaders in retailing that have been successful in upgrading consumers and introducing new products. It also discusses that most respondents prefer branded products and purchase items based on brand name. The document then discusses the importance of customer satisfaction for businesses in a competitive marketplace.
Wal Mart Vs Target retail retailing rajnish kumar itc limitedrajnish kumar
Target positions itself as a more upscale discount retailer compared to competitors like Walmart and Kmart. It offers trendy, high-quality merchandise at low prices. Target stores average around 100,000 square feet and carry clothing, home goods, electronics, toys, and limited groceries. The stores emphasize clean and organized displays to create a pleasant shopping experience for Target's core customers of younger, more educated women with household incomes around $58,000.
Retail Dictionary: 40 Retail Terms Every Modern Retailer Needs To KnowVend
This document provides definitions for 40 retail terms that every modern retailer needs to know. It begins by explaining the purpose of the retail dictionary and then provides the definition and an example for each term. Some of the terms defined include anchor store, big box store, big data, brick and click, cashwrap, click and collect, and cross merchandising. For several terms it also provides a short expert commentary on the significance and impact of the term.
Job opportunities in retail industry in Indiakolanji65
Retail involves the sale of goods and services directly to consumers. Retailers purchase products in bulk from manufacturers and then sell smaller quantities to consumers for a profit. Retail can be done through fixed locations like stores or markets, door-to-door, or delivery. Retail in India is categorized as organized and unorganized, with over 90% being traditional small stores. Organized retail accounts for 8% of the market and generates jobs, while unorganized accounts for 92% of the market. A career in retail management offers opportunities in areas like sales, operations, merchandising, and more. Skills like communication, problem-solving, and an analytical mind are important for success.
target is the US largest retailer store.this case present that how target got success in very low time and how its compete its best rival WALMART,what strategies it adopted to got success and made lots of revenues.
This document provides an overview of retailing as a chapter in a textbook. It includes sections on introduction to retailing, customer relationship management in retailing, merchandising and inventory management in retailing. It also lists the opposite checker for the chapter as Pooja Zanzmera and provides a table with the names and roll numbers of 7 students. The document then continues with definitions and explanations of key retailing concepts.
RESEARCH PROPOSAL ON VIABILITY OF LIVERPOOL RETAIL IN LARGE FROMAT STORESNikita Sanghvi
Through the market survey and personal interviews I suggested a new financial proposal for the Liverpool Retail India Ltd. My suggestions included that the company should keep their merchandise in the new format of retail outlets i.e. Large Format Stores
THE RISE AND RISE OF DOLLAR STORES - Effective StrategiesJagat J Saikia
In the American retail landscape, Dollar stores are ubiquitous and are growing into greater prominence for both shoppers and brands. Dollar Stores are typically those retail chains that sells a wide range of goods at meager prices, typically employing a Single Price Point strategy where each item costs a dollar or less. Dollar stores are poised to generate 94.2 Billion Dollars in the United States alone - with Dollar Tree and Dollar General being the predominant players. In the past, there were image issues where only a specific section of low-income families would frequent these dollar stores for their shopping needs. However, a shifting focus on service, value, and a unique assortment of products that meets the needs of a growing spectrum of shoppers had added to the tremendous growth potential.
The document provides an executive summary and introduction about organized retail stores in India. It discusses that organized retail stores are market leaders in retailing that have been successful in upgrading consumers and introducing new products. It also discusses that most respondents prefer branded products and purchase items based on brand name. The document then discusses the importance of customer satisfaction for businesses in a competitive marketplace.
Wal Mart Vs Target retail retailing rajnish kumar itc limitedrajnish kumar
Target positions itself as a more upscale discount retailer compared to competitors like Walmart and Kmart. It offers trendy, high-quality merchandise at low prices. Target stores average around 100,000 square feet and carry clothing, home goods, electronics, toys, and limited groceries. The stores emphasize clean and organized displays to create a pleasant shopping experience for Target's core customers of younger, more educated women with household incomes around $58,000.
Retail Dictionary: 40 Retail Terms Every Modern Retailer Needs To KnowVend
This document provides definitions for 40 retail terms that every modern retailer needs to know. It begins by explaining the purpose of the retail dictionary and then provides the definition and an example for each term. Some of the terms defined include anchor store, big box store, big data, brick and click, cashwrap, click and collect, and cross merchandising. For several terms it also provides a short expert commentary on the significance and impact of the term.
Job opportunities in retail industry in Indiakolanji65
Retail involves the sale of goods and services directly to consumers. Retailers purchase products in bulk from manufacturers and then sell smaller quantities to consumers for a profit. Retail can be done through fixed locations like stores or markets, door-to-door, or delivery. Retail in India is categorized as organized and unorganized, with over 90% being traditional small stores. Organized retail accounts for 8% of the market and generates jobs, while unorganized accounts for 92% of the market. A career in retail management offers opportunities in areas like sales, operations, merchandising, and more. Skills like communication, problem-solving, and an analytical mind are important for success.
target is the US largest retailer store.this case present that how target got success in very low time and how its compete its best rival WALMART,what strategies it adopted to got success and made lots of revenues.
This document provides an overview of retailing as a chapter in a textbook. It includes sections on introduction to retailing, customer relationship management in retailing, merchandising and inventory management in retailing. It also lists the opposite checker for the chapter as Pooja Zanzmera and provides a table with the names and roll numbers of 7 students. The document then continues with definitions and explanations of key retailing concepts.
RESEARCH PROPOSAL ON VIABILITY OF LIVERPOOL RETAIL IN LARGE FROMAT STORESNikita Sanghvi
Through the market survey and personal interviews I suggested a new financial proposal for the Liverpool Retail India Ltd. My suggestions included that the company should keep their merchandise in the new format of retail outlets i.e. Large Format Stores
Target Stores is a major discount retail chain operating over 1,600 stores across the United States. [1] It differentiated itself from competitors by offering trendy merchandise at affordable prices in a clean and attractive store environment. [2] Target's positioning and branding focused on providing an upscale shopping experience at discount prices through innovative merchandising strategies that anticipated customer trends. [3]
This document summarizes key aspects of sales promotion and retail marketing strategies. It discusses sales promotion as a type of marketing aimed at consumers or distribution channels to introduce new products, clear inventory, attract traffic, and temporarily boost sales. Retail is seen as having bright prospects in India due to lifestyle changes. Maintaining good customer relationships through superior service is key to retail success. The document then provides examples of strategies used by specific retailers like D-Mart, including maintaining low prices, product discounts and bundles, and emphasizing value for customers.
The Indian retail sector has traditionally consisted of small neighborhood stores but is now undergoing rapid transformation and growth. Modern retail formats like supermarkets and malls are expanding rapidly due to factors like liberalization of the economy, rising incomes, and changing consumer preferences. Organized retail makes up only 3% of an estimated $200 billion retail market in India, indicating huge growth potential. Major domestic and global retailers are looking to expand in India through various strategies like foreign direct investment or franchising.
Nordstrom has many strengths as a retailer including its focus on high-end and discount stores that appeal to different customer segments. It emphasizes unmatched customer service and builds loyalty. The company also focuses on community involvement and sustainability. While sales dropped at flagship stores, Nordstrom has identified opportunities like expanding store locations nationally and internationally. The acquisition of HauteLook helped reach younger customers. Online sales growth shows potential. Threats include competitors and shifts in customer preferences, but Nordstrom differentiates itself through superior service and quality.
D-Mart is a chain of hypermarkets and supermarkets in India operated by Avenue Supermarts Ltd. It has over 100 stores across several Indian states. D-Mart aims to provide a one-stop shopping experience for customers, offering a wide range of products including food, clothing, home goods, and more. It focuses on maintaining low prices through cost control strategies like owning most of its properties and paying suppliers quickly. This cost leadership approach has contributed to D-Mart's success and growth across India.
Here are the key points regarding customer behavior towards Pantaloons during the pandemic:
- Increased online shopping and reduced footfalls in stores due to safety concerns. Pantaloons saw a significant growth in its e-commerce business as customers shifted online.
- Preference for trusted brands. Customers were likely to opt for well-known brands like Pantaloons that they feel can ensure a safe shopping experience both online and offline. This enhances Pantaloons' brand equity.
- Focus shifted to essential and casual clothing. Demand increased for comfortable clothing, loungewear, activewear that can be worn at home. Formal and occasion wear sales declined as social gatherings reduced.
-
Retailing involves the direct sale of products and services to consumers for their personal use. Retail is driven by consumer spending which depends on disposable income and consumer confidence. Global retail sales have nearly doubled since the 1980s, with the US leading, and retail in Asian economies is growing 6-10% annually. Various types of retailers include specialty stores, department stores, supermarkets/hypermarkets, convenience stores, discount stores, and off-price retailers. Operational issues for retailers include supply chain management, pricing, sales channels, and retail strategies.
Factors affecting the consumer purchase for Private Label Apparel Brands in I...Kashyap Shah
This document presents a study on factors affecting consumer purchase decisions for private label apparel brands in India. It discusses the growth of the retail industry and organized retail in India. Private label brands make up 10-12% of organized retail currently. The study aims to understand consumer perceptions, preferences, and loyalty towards private label brands. A literature review and qualitative research was conducted. 21 potential factors influencing purchases were identified and a questionnaire was administered to 304 respondents. Factor analysis identified 7 key factors that influence private label purchases: quality, price, store attributes, lifestyle fit, word-of-mouth, promotions, and brand name.
This document provides an overview of the retail company V-MART and its marketing strategy. It discusses that V-MART was founded in 2002 in West Bengal and opened its first store in Ahmedabad, Gujarat in 2003. It now has over 108 stores across 12 states with a total retail space of over 8.2 thousand square meters. The document then examines V-MART's product categories and organizational structure. It analyzes V-MART's marketing strategy of regional cluster expansion, promotional events, and increasing private label products. It also provides the objectives and methodology of the research report, including primary and secondary data collection.
This marketing communication plan summarizes Target's history, mission, marketing strategy, and current marketing objectives. It provides an overview of Target as a company, including its strengths, weaknesses, opportunities, threats, target markets, and product analysis. The plan then outlines Target's current communication objectives, proposed advertising strategy and budget, and a two-year integrated marketing communication strategy focusing on advertising, promotions, direct marketing and public relations.
The document discusses key concepts in retailing including defining retailing and different types of retailers. It covers the retail life cycle and factors that influence the future of retailing like technology, demographics, and globalization. The document also examines the importance of store image and elements retailers use to create a desirable image like store design, atmospherics, layout, visual merchandising, and pricing.
Retailing involves selling products to consumers for personal use. It matches consumer demand with manufacturer supply. The document discusses various retail formats like traditional stores, department stores, discount stores, category killers, specialty stores, and e-tailers. It also discusses drivers of changing retail structures in India like customers, marketing plans, visual recognition, workplace challenges, and planning for success. Finally, it discusses how the internet redefines the retail industry by supporting marketing, facilitating retail marketing through communication and interaction, and enabling a different retail experience through online shopping.
project report on topic comparative analysis of Big Bazaar and Vishal mega martc143k
This document provides an overview of the retail industry in India. It begins with an executive summary that outlines key facts about the size and growth of the Indian retail industry. It then covers topics such as the meaning of retail, industry structure, profiles of major Indian retailers like Vishal Retail Ltd, objectives of the study, research methodology, and conclusions. The document aims to analyze the Indian retail scenario, consumer trends, and identify retail models that could work in India. It examines both global and Indian retail trends to understand characteristics and drivers of change in the Indian retail industry.
Target Corporation is a major American retailer that offers discounted everyday and fashionable merchandise. It uses an integrated cost leadership and differentiation strategy to provide value to customers. Target differentiates itself from competitors like Walmart by marketing itself as "cheap chic" and bringing trends to stores faster. While Walmart is seen as a discount superstore, Target enforces a brand of quality products and high-end affordability. During the economic recession, Target emphasized value more through messages like "Fresh for Less" to address falling sales.
The document provides an overview of retail customer categories and characteristics in India. It identifies five specific retail consumer categories (time killers, pleasure seekers, focused fulfillers, general browsers, product groupies) and describes their typical behaviors. It also outlines characteristics of retail customers like conversion rates and discusses subcategories of buyer personality types. Key players in the Indian retail industry are also briefly profiled.
Case study on Visual Merchandising in Reliance Retail- By Raghav KulkarniRaghav kulkarni
The following Case study sheds Light on how Reliance Retail uses concept of Visual Merchandising and how it influences and Impacts the customer Buying Pattern and Problems associated with it.
Retail media provides brands visibility through various in-store formats from aisles to checkout areas. It reaches mass consumers, especially affluent households. While retail media covers a small portion of ad spending, it offers wide reach and targeting of specific consumer segments at points of purchase. However, the high expenses mean only major brands can dominate the retail media space.
Retailing involves the sale of goods and services to consumers for personal use. The top ten largest retailers in the United States are led by Walmart, with supermarket and department stores making up many of the other spots. Retail in India is a large and growing industry, with various formats like malls, specialty stores, discount stores, and department stores emerging. New retail chains in India first emerged in the 1990s, shifting from manufacturers to pure retailers, and growth has continued with the emergence of shopping centers and hypermarkets.
Target Corporation is a major retailer with 350,000 employees and $65 billion in annual sales across 1,767 stores. It has a diverse customer base with a median household income of $64,000 and 57% of customers being college graduates. Target focuses on providing great value, being a good community partner, and offering a diverse range of products while continuously innovating and ensuring an exceptional shopping experience for its customers.
Customer Relationship Management is a continuously updated process that identifies customer value and designs interactions to delight customers so they remain loyal and become brand ambassadors. Successful CRM requires full employee involvement and appropriate technology. Retailing involves the last interaction between a company's products and consumers. It is highly personalized and relies on consistent customer visits to be successful. Various retail formats have emerged to classify different types of stores.
Retailing involves selling products to consumers for personal use. It matches consumer demand with manufacturer supply. The document discusses various retail formats like traditional stores, department stores, discount stores, category killers, specialty stores, and e-tailers. It also discusses drivers of changing retail structures in India like customers, marketing plans, visual recognition, workplace challenges, and planning for success. Finally, it discusses how the internet redefines the retail industry by supporting marketing, facilitating retail marketing through communication and interaction, and enabling a different retail experience through online shopping.
Target Stores is a major discount retail chain operating over 1,600 stores across the United States. [1] It differentiated itself from competitors by offering trendy merchandise at affordable prices in a clean and attractive store environment. [2] Target's positioning and branding focused on providing an upscale shopping experience at discount prices through innovative merchandising strategies that anticipated customer trends. [3]
This document summarizes key aspects of sales promotion and retail marketing strategies. It discusses sales promotion as a type of marketing aimed at consumers or distribution channels to introduce new products, clear inventory, attract traffic, and temporarily boost sales. Retail is seen as having bright prospects in India due to lifestyle changes. Maintaining good customer relationships through superior service is key to retail success. The document then provides examples of strategies used by specific retailers like D-Mart, including maintaining low prices, product discounts and bundles, and emphasizing value for customers.
The Indian retail sector has traditionally consisted of small neighborhood stores but is now undergoing rapid transformation and growth. Modern retail formats like supermarkets and malls are expanding rapidly due to factors like liberalization of the economy, rising incomes, and changing consumer preferences. Organized retail makes up only 3% of an estimated $200 billion retail market in India, indicating huge growth potential. Major domestic and global retailers are looking to expand in India through various strategies like foreign direct investment or franchising.
Nordstrom has many strengths as a retailer including its focus on high-end and discount stores that appeal to different customer segments. It emphasizes unmatched customer service and builds loyalty. The company also focuses on community involvement and sustainability. While sales dropped at flagship stores, Nordstrom has identified opportunities like expanding store locations nationally and internationally. The acquisition of HauteLook helped reach younger customers. Online sales growth shows potential. Threats include competitors and shifts in customer preferences, but Nordstrom differentiates itself through superior service and quality.
D-Mart is a chain of hypermarkets and supermarkets in India operated by Avenue Supermarts Ltd. It has over 100 stores across several Indian states. D-Mart aims to provide a one-stop shopping experience for customers, offering a wide range of products including food, clothing, home goods, and more. It focuses on maintaining low prices through cost control strategies like owning most of its properties and paying suppliers quickly. This cost leadership approach has contributed to D-Mart's success and growth across India.
Here are the key points regarding customer behavior towards Pantaloons during the pandemic:
- Increased online shopping and reduced footfalls in stores due to safety concerns. Pantaloons saw a significant growth in its e-commerce business as customers shifted online.
- Preference for trusted brands. Customers were likely to opt for well-known brands like Pantaloons that they feel can ensure a safe shopping experience both online and offline. This enhances Pantaloons' brand equity.
- Focus shifted to essential and casual clothing. Demand increased for comfortable clothing, loungewear, activewear that can be worn at home. Formal and occasion wear sales declined as social gatherings reduced.
-
Retailing involves the direct sale of products and services to consumers for their personal use. Retail is driven by consumer spending which depends on disposable income and consumer confidence. Global retail sales have nearly doubled since the 1980s, with the US leading, and retail in Asian economies is growing 6-10% annually. Various types of retailers include specialty stores, department stores, supermarkets/hypermarkets, convenience stores, discount stores, and off-price retailers. Operational issues for retailers include supply chain management, pricing, sales channels, and retail strategies.
Factors affecting the consumer purchase for Private Label Apparel Brands in I...Kashyap Shah
This document presents a study on factors affecting consumer purchase decisions for private label apparel brands in India. It discusses the growth of the retail industry and organized retail in India. Private label brands make up 10-12% of organized retail currently. The study aims to understand consumer perceptions, preferences, and loyalty towards private label brands. A literature review and qualitative research was conducted. 21 potential factors influencing purchases were identified and a questionnaire was administered to 304 respondents. Factor analysis identified 7 key factors that influence private label purchases: quality, price, store attributes, lifestyle fit, word-of-mouth, promotions, and brand name.
This document provides an overview of the retail company V-MART and its marketing strategy. It discusses that V-MART was founded in 2002 in West Bengal and opened its first store in Ahmedabad, Gujarat in 2003. It now has over 108 stores across 12 states with a total retail space of over 8.2 thousand square meters. The document then examines V-MART's product categories and organizational structure. It analyzes V-MART's marketing strategy of regional cluster expansion, promotional events, and increasing private label products. It also provides the objectives and methodology of the research report, including primary and secondary data collection.
This marketing communication plan summarizes Target's history, mission, marketing strategy, and current marketing objectives. It provides an overview of Target as a company, including its strengths, weaknesses, opportunities, threats, target markets, and product analysis. The plan then outlines Target's current communication objectives, proposed advertising strategy and budget, and a two-year integrated marketing communication strategy focusing on advertising, promotions, direct marketing and public relations.
The document discusses key concepts in retailing including defining retailing and different types of retailers. It covers the retail life cycle and factors that influence the future of retailing like technology, demographics, and globalization. The document also examines the importance of store image and elements retailers use to create a desirable image like store design, atmospherics, layout, visual merchandising, and pricing.
Retailing involves selling products to consumers for personal use. It matches consumer demand with manufacturer supply. The document discusses various retail formats like traditional stores, department stores, discount stores, category killers, specialty stores, and e-tailers. It also discusses drivers of changing retail structures in India like customers, marketing plans, visual recognition, workplace challenges, and planning for success. Finally, it discusses how the internet redefines the retail industry by supporting marketing, facilitating retail marketing through communication and interaction, and enabling a different retail experience through online shopping.
project report on topic comparative analysis of Big Bazaar and Vishal mega martc143k
This document provides an overview of the retail industry in India. It begins with an executive summary that outlines key facts about the size and growth of the Indian retail industry. It then covers topics such as the meaning of retail, industry structure, profiles of major Indian retailers like Vishal Retail Ltd, objectives of the study, research methodology, and conclusions. The document aims to analyze the Indian retail scenario, consumer trends, and identify retail models that could work in India. It examines both global and Indian retail trends to understand characteristics and drivers of change in the Indian retail industry.
Target Corporation is a major American retailer that offers discounted everyday and fashionable merchandise. It uses an integrated cost leadership and differentiation strategy to provide value to customers. Target differentiates itself from competitors like Walmart by marketing itself as "cheap chic" and bringing trends to stores faster. While Walmart is seen as a discount superstore, Target enforces a brand of quality products and high-end affordability. During the economic recession, Target emphasized value more through messages like "Fresh for Less" to address falling sales.
The document provides an overview of retail customer categories and characteristics in India. It identifies five specific retail consumer categories (time killers, pleasure seekers, focused fulfillers, general browsers, product groupies) and describes their typical behaviors. It also outlines characteristics of retail customers like conversion rates and discusses subcategories of buyer personality types. Key players in the Indian retail industry are also briefly profiled.
Case study on Visual Merchandising in Reliance Retail- By Raghav KulkarniRaghav kulkarni
The following Case study sheds Light on how Reliance Retail uses concept of Visual Merchandising and how it influences and Impacts the customer Buying Pattern and Problems associated with it.
Retail media provides brands visibility through various in-store formats from aisles to checkout areas. It reaches mass consumers, especially affluent households. While retail media covers a small portion of ad spending, it offers wide reach and targeting of specific consumer segments at points of purchase. However, the high expenses mean only major brands can dominate the retail media space.
Retailing involves the sale of goods and services to consumers for personal use. The top ten largest retailers in the United States are led by Walmart, with supermarket and department stores making up many of the other spots. Retail in India is a large and growing industry, with various formats like malls, specialty stores, discount stores, and department stores emerging. New retail chains in India first emerged in the 1990s, shifting from manufacturers to pure retailers, and growth has continued with the emergence of shopping centers and hypermarkets.
Target Corporation is a major retailer with 350,000 employees and $65 billion in annual sales across 1,767 stores. It has a diverse customer base with a median household income of $64,000 and 57% of customers being college graduates. Target focuses on providing great value, being a good community partner, and offering a diverse range of products while continuously innovating and ensuring an exceptional shopping experience for its customers.
Customer Relationship Management is a continuously updated process that identifies customer value and designs interactions to delight customers so they remain loyal and become brand ambassadors. Successful CRM requires full employee involvement and appropriate technology. Retailing involves the last interaction between a company's products and consumers. It is highly personalized and relies on consistent customer visits to be successful. Various retail formats have emerged to classify different types of stores.
Retailing involves selling products to consumers for personal use. It matches consumer demand with manufacturer supply. The document discusses various retail formats like traditional stores, department stores, discount stores, category killers, specialty stores, and e-tailers. It also discusses drivers of changing retail structures in India like customers, marketing plans, visual recognition, workplace challenges, and planning for success. Finally, it discusses how the internet redefines the retail industry by supporting marketing, facilitating retail marketing through communication and interaction, and enabling a different retail experience through online shopping.
The document provides an overview of the retail industry in India and analyzes retail trends and consumer behavior. It discusses the structure and key aspects of retail operations. The document also includes a case study of Vishal Retail Ltd, one of the largest retail chains in India, outlining its company profile, departments, products, and organizational structure.
The document compares the marketing strategies of Big Bazaar and Vishal Megamart, two large retail chains in India. It finds that Big Bazaar's innovations like special offers and stabilizing store operations before expanding helped it succeed, while Vishal expanded too quickly without proper capitalization and supply chain management, leading to its downfall. The SWOT analyses show Big Bazaar's strengths were its brand, infrastructure, and product variety, while Vishal's were its value retail segment understanding and distribution network, but it faced threats from category killers and store performance issues.
This document discusses the importance and functions of retail marketing. It begins by defining retail marketing and noting its importance in connecting manufacturers to customers through product distribution and promotion. It then lists 8 ways in which retailing contributes to the economy and society, such as by shaping lifestyles, dominating the supply chain, and offering employment. The document proceeds to describe 4 key functions of retail marketing: assembling merchandise, breaking bulk quantities, holding stock, and collecting market information. It concludes by emphasizing the role of retailers in performing important marketing functions like transportation, warehousing, and product promotion.
This document provides an overview of food retailing in India. It discusses the evolution of food retailing from small roadside shops to modern retail stores. It also describes the major types of retail stores like department stores, supermarkets, hypermarkets and chain stores. Non-store retailing methods like direct selling, telemarketing, online retailing and direct marketing are also outlined. The top 10 food retailers in India are listed, and some of the leading food retail brands like Food World, Apna Bazaar and Reliance Fresh are briefly profiled. Competition in the Indian food retail industry is described as fierce, with retailers differentiating through pricing and product offerings.
The document discusses different types and classifications of retailers. It begins by defining retailing as the set of activities used to sell products or services to consumers for personal use. Retailers perform functions like anticipating customer wants and acquiring products. Retailers can be classified in different ways such as by number of outlets, location, size, or ownership structure (independent, chain, franchise, cooperative). The document also discusses emerging retail formats like e-commerce and trends in retail business models.
Big bazaar customer relationship managementAman Bansal
This document is a project report submitted by Rishi Sharma for the degree of Bachelor of Business Administration from Noida International University. The project focuses on analyzing customer relationship management practices at Big Bazaar, a large retail chain in India. It includes an introduction to CRM and its importance. It also discusses the advantages of CRM for Big Bazaar, such as providing better customer service and increasing revenues. Some challenges in implementing CRM at Big Bazaar are inaccurate product information, lack of product knowledge among sales staff, and difficulties in updating pricing and product details. The report aims to assess how CRM influences customer satisfaction levels and the store's overall success.
Conventional retailing refers to traditional small retail formats like local kirana shops. These shops are family-run with low investment and lack standardization. They make up 98% of India's retail sector. They remain popular due to proximity, credit options, and efficient management systems. However, organized retail is growing at 35% annually and poses a threat with modern practices and formats. E-commerce is also transforming retail by offering convenience and new ways for customers and retailers to interact.
Trading companies add value by bringing suppliers and buyers together. To build a successful and growing trading company, there is much to be learnt by bench marking with successful ones, and working on some drivers that will enable the company to unleash growth. This paper discusses some of the drivers for improvement.
This document discusses retail management and visual merchandising. It provides information on different types of retailers like organized vs unorganized retailers, and retail formats like department stores, boutiques, and warehouse stores. It also discusses key aspects of retail management like service quality, buying and assembling products, warehousing, selling, financing, and market research. Visual merchandising aims to attract customers and increase sales through creative displays, lighting, and product placement. The tasks of visual merchandisers include designing displays, obtaining props, and maintaining merchandise presentation.
Customer satisfaction a study with special reference to ritu we ars at morada...malay srivastava
This document provides an introduction and table of contents for a study on customer satisfaction with a focus on Ritu Wear. The introduction gives an overview of the company profile, objectives of the study, research methodology used, and outlines that the report will analyze data collected from a survey of 50 customers at Ritu Wear's store to understand their preferences and loyalty. It also notes that interviews were conducted with additional customers at the store.
The document provides information on retail management. It discusses the various processes involved in retail management, which help customers procure merchandise from stores for personal use. Retail management aims to provide a pleasurable shopping experience for customers. It also outlines different retail formats like convenience stores, supermarkets, and hypermarkets. The retail sector in India is transitioning from traditional small stores to organized retail formats. While organized retail is growing, around 90% of retail in India remains unorganized.
This document provides an overview and summary of a project report on the retail industry in India. It discusses the growth of the organized retail sector in India with the introduction of modern retail formats like supermarkets and malls. It also profiles Vishal Retail Ltd, one of the largest retail chains in India, describing its history, products offered, functional departments and store organization. The document outlines the structure of the retail industry and defines key terms like retailers, wholesalers and manufacturers.
The document provides an overview of customer relationship management at Big Bazaar, an Indian retail chain. It discusses trends in the Indian retail industry, including the rise of organized retail and department stores. It also analyzes factors affecting retail marketing such as government policies, consumer behavior, real estate development, and manufacturers. Overall, the document outlines how Big Bazaar manages customer relationships in the context of the evolving Indian retail sector.
The document provides an overview of retailing. It discusses that retailing involves selling goods directly to consumers for personal use. Retailers perform important functions like anticipating consumer wants, acquiring a variety of products, and providing convenient access. Retailing is an important link between manufacturers and consumers by making products easily available. While entry into retailing has low barriers, retailers must successfully cater to consumer needs to survive in this competitive industry.
1. The document discusses the meaning, functions, importance, scope, and nature of retailing. Retailing involves the sale of goods and services to the final consumer.
2. Key functions of retailing include understanding customer needs, buying and assembling products, breaking bulk, warehousing, selling, providing credit, bearing risks, grading/packing, and collecting market information.
3. Retailing provides employment, contributes to the economy, dominates the supply chain, and offers convenience to customers through product availability and location. The scope of retailing is wide and continues to grow and change with technology.
Brief Description of the SEBI . meaning Of the SEBI.
Reasons for the establishment of SEBI.
Purpose of the SEBI and Role of SEBI
Function of SEBI
Conclusion
This document discusses market structure and defines the key types: perfect competition, monopoly, and monopolistic competition. Perfect competition has many small sellers and buyers, homogeneous products, free entry and exit, and transparent information. A monopoly has a single seller with a unique product and controls price and quantity. Monopolistic competition has multiple firms producing differentiated products facing downward sloping demand curves. The main differences are around the number of buyers and sellers, product homogeneity, and price uniformity across the types.
Sector Information
Company Information
Mission, Vision, Values
Recruitment Process
Sourcing Mix
Knowledge and Skill required
Selection Process
Interview Questions of 3 different job titles
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
2. Contents
Chapter 1.......................................................................................................................................................3
Introduction ..............................................................................................................................................3
Importance of Retailing ...........................................................................................................................4
Economic Justification for retailing .........................................................................................................4
GENERAL SERVICES ...................................................................................................................................5
Facilitating Services:..................................................................................................................................6
Overview of Retail Sector..........................................................................................................................8
Summary...................................................................................................................................................9
Chapter 2.....................................................................................................................................................10
TYPES OF STORES....................................................................................................................................10
Major Types of Retail Stores...................................................................................................................10
Department Stores..................................................................................................................................10
Classification of Department Stores ...................................................................................................11
Location of Department Stores...........................................................................................................12
Future of Department Stores..............................................................................................................14
Super Markets:.......................................................................................................................................14
Advantages of supermarkets ..............................................................................................................15
Limitations of Supermarkets...............................................................................................................15
Discount Houses......................................................................................................................................16
Chain Stores or Multiple Shops..............................................................................................................16
Advantages of chain stores or multiple shops....................................................................................17
Limitations of chain stores or multiple shops.....................................................................................17
Non-Store Retailing................................................................................................................................18
Direct Selling ...........................................................................................................................................18
Advantages of Direct Selling ...............................................................................................................19
Limitations of Direct Selling ................................................................................................................19
Online Retailing:......................................................................................................................................21
Automatic vending..................................................................................................................................22
Direct Marketing.....................................................................................................................................23
Franchising..............................................................................................................................................24
Summary.................................................................................................................................................25
Chapter 3.....................................................................................................................................................26
3. RETAIL STRATEGY........................................................................................................................................26
Overview:................................................................................................................................................26
Function of a strategy .............................................................................................................................26
Retailers classified by marketing Strategies .......................................................................................26
OPERATING EXPENSES AND PROFITS..................................................................................................28
COMPETITIVE ADVANTAGE WITH SPECIAL REFERENCE TO PHYSICAL FACILITIES..............................28
LOCATION............................................................................................................................................29
DESIGN................................................................................................................................................29
LAYOUT ...............................................................................................................................................29
ASSESSING COMPETITORS CURENT STRATEGIES................................................................................29
TECHNOLOGY STRATEGY.....................................................................................................................31
4. Chapter 1
Introduction
The word 'Retail' is derived from a French word with the prefix re and the verb tailer
meaning "to cut again". Evidently, retail trade is one that cuts off smaller portions
from large lumps of goods. It is a process through which goods are transported to
final consumers. In other words, retailing consists of the activities involved in selling
directly to the ultimate consumer for personal, non-business use. It embraces the
direct-to-customer sales activities of the producer, whether through his own stores
by house-to-house canvassing or by mail-order business.
Manufacturers engage in retailing when they make direct-to-consumer sales of their
products through their own stores (as Bata and Carona shoe companies, D.C.M.
Stores, Mafat lals and Bombay Dyeing) by door-to-door canvass, or mail order or
even on telephone. Even a wholesaler engages in retailing when sells directly to an
ultimate consumer, although his main business may still be wholesaling.
A retailer is a merchant or occasionally an agent or a business enterprise, whose
main business is selling directly to ultimate consumers for non-business use. He
performs many marketing activities such as buying, selling, grading, risk-trading,
and developing information about customer's wants. A retailer may sell infrequently
to industrial users, but these are wholesale transactions, not retail sales. If over one
half of the amount of volume of business comes from sales to ultimate consumers,
i.e. sales at retail, he is classified as a retailer. Retailing occurs in all marketing
channels for consumer products.
5. Importance of Retailing
The retailer is an intermediary in the marketing channel because he is both marketer
and customer, who sells to the last man to consume. He is a specialist who maintains
contact with the consumer and the producer; and is an important connecting link in
a complex mechanism of marketing. Though producers may sell directly to
consumers, such method of distributing goods to ultimate users is inconvenient,
expensive and time consuming as compared to the job performed by a specialist in
the line. Therefore, frequently the manufacturers depend on the retailers to sell their
products to the ultimate consumers. The retailer, who is able to provide appropriate
amenities without an excessive advance in prices of goods is rewarded by larger or
more loyal patronage.
Economic Justification for retailing
All middlemen basically serve as purchasing agents for their customers and as sales
specialists for their suppliers. To carry out those roles, retailers perform many
activities, including anticipating customer's wants, developing assortments of
products, acquiring market information and financing.
It is relatively easy to become a retailer. No large investment in production
equipment is required, merchandise can often be purchased on credit and store space
can be leased with no 'down payment' or a simple website can be set up at relatively
little cost. Considering these factors, perhaps it's not surprising that there are just
over a 6 million retail outlets operating across the Indian cities from north to south
and from east to west. This large number of outlets, many of which are trying to
serve and satisfy the same market segments, results in fierce competition and better
values for shoppers.
6. To enter retailing is easy; to fail is even easier! To survive in retailing, a firm must
do a satisfactory job in its primary role - catering to consumers. Rama Subramaniam
the former head - retail segment Spensors described a successful retailer as a
"merchant who sells goods that won't come back to customers who will". Of course,
a retail firm also must fulfill its other role - serving producers and wholesalers. This
dual role is both the justification for retailing and the key to success in retailing.
GENERAL SERVICES
The general services which a retailer provides are:
1. The retailer anticipates the wants of the consumers and then supplies them the
right kind of goods at reasonable price. His job is to make the consumers buying as
easy and convenient as possible i.e. he acts as a consumers' agent.
2. He performs the service of bulk-breaking i.e. dividing large quantities into small
units, such as individual cans, bottles, boxes, wrappers, packages, appropriate for
consumer use.
3. He offers a large assortment of merchandise, of suitable size, colour, design, style
and seasonal items-ranging from domestic utensils, household requisites to
speciality goods.
4. He creates time and place utility by storing the products in off season and by
transporting these goods to the places where they can be readily available as and
when needed by the consumer.
5. He also assumes risks by guaranteeing the goods he sells to the consumer.
6. He also offers free delivery of goods, credit on open accounts, free alteration,
liberal exchange facilities, instructions in the use of goods, revolving credit plans,
and long term installment programmes.
7. 7. He adds to the convenience and ease of consumer purchasing by offering
convenient shopping locations, market informations and other services such as free
parking privileges, lessons on product use and a multitude of other facilities may be
offered and found sufficiently desired to result in increased patronage.
8. He helps the producers in distributing their products by using advertisement
display and personal selling.
9. The level of retail sales is one of the most useful barometers of the nations
economic health. For example when sales of cycles pick-up, sales of steel and
components also increase, as does employment and thus increasing purchasing
power. But when sales go down, manufacturers cut back production, unemployment
increases and retail sales also goes down.
Facilitating Services:
In order to carry out functions involving transfer of ownership and physical supply
effectively retailers perform a number of facilitating functions i.e. functions relating
to standardization and grading, financing, risk-taking and market information.
A retailer of fresh fruits and vegetables has to standardize and grade these to make
these acceptable to customers. They establish standards, inspect goods they receive,
and sort them in various classifications.
Quite often they purchase in large quantities and then divide them and repack them
before selling. When the retailer sells goods on credit he performs finance function.
From the moment he sells and collects the last rupee from the customer, when goods
are sold on credit, he is said to be performing a financing function. Another function
performed by retailers is that of risk-taking. During the entire time a retailer holds
title to particular goods, he must inevitably bear a wide variety of risks. Not only the
8. goods may be destroyed through fire or flood, but also, there is often the danger of
theft, deterioration or spoilage.
Furthermore, such merchants are also faced with the threat that consumers will not
accept their product or will purchase them only at unprofitable prices. He also
undertakes risk in handling of fashion goods and other items for which consumer
demand varies greatly from time to time.
Since the retailer knows about the wishes of his customers the price, quality and the
kind of merchandise available in the market as well as the existing and anticipated
style trends, he keeps in stock the goods usually required by customers.
9. Overview of Retail Sector
All over the world, retailing is undergoing a process of evolution and is poised to
undergo dramatic transformation. With special reference to India, the retail sector
employs over 10 percent of the national work force but is characterised by a high
degree of fragmentation with over 5 million outlets, 96 percent of whom are very
small with an area of less than 50 m2. The retail universe doubled between 1986 and
2006 and the number of outlets per 1000 people at an All India Level increased from
4.9 in 1988 to 14.8 in 2006. Because of their small size, the Indian Retailers have
very little bargaining power with manufacturers and perform only a
few of the flows in marketing channels unlike in the case of retailers in developed
countries. The corner grocer or the 'Kirana' Store is a key element in the retail in
India due to the house wifes unwillingness to go long distances for purchasing daily
needs. Although convenience and merchandise were the two most important reasons
for choosing a store, the choice interia varied across product categories.
Convenience was indicated by consumers as the most important reason in the choice
of groceries and fruit outlets, chemists and life style items while merchandise was
indicated as the most important in durables, books and apparel.
In recent years, there has been a slow spread of retail chains in some formats like
super markets, department stores, malls and discount stores. Factors facilitating the
spread of chains are the availability of quality products at lower prices, improved
shopping standards, convenient shopping and display and blending of shopping with
entertainment and the entry to industrial houses like Goenkas and Tatas into
retailing.
Thailand is one of the countries whose economy has developed rapidly in recent
years. There has been a tradition of independently owned outlets called shop houses.
These outlets are run by families, with the shop located on the ground floor and the
10. family's living quarters on upper floors. Thailand's first departmental store opened
in 1956 and the first shopping centre in (1967). Discounts and super stores were
introduced in 1989. However, the presence of super market format has been low due
to ingrained habit of buying fresh produce. Speciality stores were just emerging in
Thailand in mid 1990s.
Another country where the development of the retail sector has also followed an
interesting path is Brazil. The concept of self service in shopping was introduced to
Brazil in 1953 but until 1972, there was no foreign influence in the Brazilian retail
sector. Food retailing especially, contained to be Brazilian owned and managed
although international innovations were adopted. The number of intermediaries in
marketing channels is decreasing as the operation of wholesalers is under threat from
the direct contact between retailers and suppliers, although few specialised
distributors have emerged who provide value added services such as distribution of
frozen and chilled food.
Summary
Retailing is the sale of goods and services to ultimate consumers for personal, non-
business use. Any institution may engage in retailing, but a firm engage primarily in
retailing is called a retailer. Retailers serve as purchasing agents for consumer and
as sales specialists for producers and wholesaling middleman. They perform many
specific activities such as anticipating consumers' wants, developing product
assortments and financing.
11. Chapter 2
TYPES OF STORES
It is in retailing that very drastic changes have occurred during the last two decades.
Some institutions have disappeared whereas newer ones have been added. This
process of deletion / addition still continues in newer forms. There are large scale
retailing shops together with very small units, both working simultaneously. They
have from hawkers and peddlers, who have no permanent place, to well organised,
settled retail shops like chain stores, departmental stores, etc. The institutions
carrying on the retail business can be classified as under
Major Types of Retail Stores
In store-Retailing Non-Store Retailing Franchising
Department Stores Direct Selling
Super Markets Telemarketing
Discount Houses Online Retailing
Chain Stores Automatic vending
Multiple Shops Direct Marketing.
Department Stores
These are large scale retail stores selling under one roof and one control a variety of
goods divided into different departments, each of which specializes in an individual
merchandise. Converse is of the opinion that a department store is a retail shop
handling several classes of goods including fast moving consumer goods, each class
being separated from others in management, accounting and location. It is viewed
by Clarke as that type of retail institution which handle a wide verity of merchandise
12. under one roof which the merchandise grouped into well-defined departments which
is centrally controlled and which caters primarily to women shoppers.
Thus a department store is a retailing business unit that handles a wide variety of
shopping and specialty goods and is organized into separate departments for
purposes of sales promotion, accounting control and store operation.
Recent trends are to add departments for automotive, recreational and sports
equipment, as well a services such as insurance, travel advice and income-tax
preparation. Department stores are distinctive in that they usually are oriented
towards service. They are usually shopping centers.
Classification of Department Stores
These stores may be classified either according to ownership or income groups to
which they appeal.
a) On the basis of ownership these are :
i. The independent;
ii. The ownership group; and
iii. Chain department Stores.
Independent stores are owned by a financial interest which does not own other
similar stores Ownership group stores are those stores which were formerly
dependent but now have been combined.
Chain department stores are those stores which are centrally owned and operated.
b) On the basis of income groups:
These stores cater to the middle and high income groups. They usually handle good
quality merchandise and offer maximum service to the customers. Other stores cater
to the needs of the lower income group people.
13. c) Sometimes there is also to be found what are called leased department stores.
Although it appears to most customers that all departments in a department store are
owned and operated by the store, that is not always the case. The operations of
certain departments are sometimes turned over to leases and such departments are
called leased departments. Characteristic Features of Department Stores The chief
features of these stores are:
(i) These are integrated stores performing operations in addition to other retail stores
such as wholesaling.
(ii) Goods are divided into different classes with different locations and management
within the store itself.
(iii) These stores are distinguished by the nature of goods they self and not by the
varieties they keep for example, drug and variety stores carry a wide variety of
goods.
(iv) The store is a horizontally integrated institution. It brings together under one
roof a range of merchandise offerings comparable to the combined offerings of many
stores specializing in single or fewer merchandise lines.
Location of Department Stores
The success of a department store depends much on its location, availability of space,
the area and community to be served and ability to attract customers are the
important factors to be considered before establishing a store at a particular place.
Special Consideration should be given to accommodation so as to allow every
possible amusement facilities. Considerable space should also be allotted for show
room displaying stores merchandise.
Merits of Department Stores
14. 1. Large department stores buy in large quantities and receive special concession or
discount in their purchases. Many of them purchase direct form manufactures and
hence, middleman's charges are eliminated.
2. Department stores are in a position to pay cash on all or most of their purchases
and this gives them an additional advantage of picking up
quality goods at cheaper rates and at the same time stocking the latest style and fads.
3. Customers can do all their purchases under one roof and it appeals to people of all
walks of life.
4. The organization is too large to provide expert supervision of various departments
for the adoption of a liberal credit and delivery service for large-scale advertising.
5. When customers enter the store to deal with one department they are frequently
induced by the advertisement which the display of goods offers to make purchases
in other departments as well. Limitations of Department Stores
Department business organizations are not free from abuses. There are certain
specific limitations from which such institutions suffer such as:
1. The cost of doing business is very high due to heavy overhead expenses.
2. Because of their location in a central shopping area they are of not much advantage
to the public because goods required at short notice are always purchased from the
nearest traders.
3. There is lack of personal touch and personal supervision which is to be found in
single line.
4. When hired diligence is substituted for the diligence of ownership, loss and leaks
are likely to occur.
15. 5. Many customers abuse the liberal services extended and take advantage of the
policy of the 'customers is always right'.
6. The type of salesmanship found in many stores is very poor because of low
payments and lack of supervision.
Future of Department Stores
Nothing definite can be predicted whether these department organizations will
continue to carry on and will progress in face of overgrowing competition of chain
stores, mail order business and other smaller independent dealers. Stores with
overhead burdens which cannot be reduced may have to go, but the department
stores as an institution are bound to go on with a future. The department store which
is properly equipped in plant, stock and personnel to carry on a reasonable sales
volume and then does a better job in giving values and services, then its competitors
are entitled to, and will receive its business profit.
Department Stores are now opening branches in many new areas and making
concerted efforts to meet new competition. They have been modernized, redecorated
and better services are being developed; and they are being converted to self-service.
Super Markets:
These are large, self service stores that carry a broad and complete line of food and
non-food products. They have central check out facilities.
Kotler defines supermarket as 'a departmentalised retail establishment having four
basic departments viz. self-service grocery, meat, produce and diary plus other
household departments, and doing a maximum business. It may be entirely owner
operated or have some of the departments leased on a concession basis.'
Characteristic Features of Super Markets Chief characteristic features of
supermarkets include the following:
16. i. They are usually located in or near primary or secondary shopping areas
but always in a place where parking facilities are available.
ii. They use mass displays of merchandise.
iii. They normally operate as cash and carry store.
iv. They make their appeal on the basis of low price, wide selection of
merchandise, nationally advertised brands and convenient parking.
v. They operate largely on a self-service basis with a minimum number of
customer services. Supermarkets came into existence during the
depression in U.S.A. At that time they sold only food products, and their
principal attraction was the low price of their merchandise. As super
markets increased in number day by day they also expanded into other
lines of merchandise.
Advantages of supermarkets
i. Super markets have the advantage of convenient shopping, permitting the
buyer to purchase all his requirements at one place.
ii. Super markets also stock a wide variety of items.
iii. These markets can sell at low prices because of their limited service feature,
combined with large buying power and the willingness to take low percent of profit
margins.
iv. Shopping time is considerably reduced.
Limitations of Supermarkets
i. The large and extensive area required for a super market is not available cheaply
in important places.
ii. The products which require explanation for their proper use can not be dealt in
through the super markets.
17. iii. Customer services are practically absent.
iv. Another limitation of the super market is the exorbitantly high administrative
expenses.
Discount Houses
These are large stores, freely open to the public and advertising widely. They are
self-service and general merchandising stores. They carry a wide assortment of
products of well known brands, appliances, housewares, home furnishings, sporting
goods, clothing, toy and automotive services. They complete on low price basis and
operate on a relatively low mark-up and a minimum number of customer service.
They range from small open showroom to catalogue type order offices to full line
limited service, and promotional stores. They buy their merchandise stocks both
from wholesale distributors and directly from manufacturers.
Chain Stores or Multiple Shops
A chain store system consists of four or more stores which carry the same kind of
merchandise are centrally owned and managed and usually are supplied from one or
more central warehouses. A chain store is one of the retail units in chain store system.
Chains have been interpreted as a group of two or more reasonably similar stores in
the same kind or field of business under one ownership and management,
merchandised wholly or largely from central merchandising head quarters and
supplied from the manufacturer or orders placed by the central buyers.
In Europe, this system is called as Multiple Shops and the American call it as "Chain
Stores". Under the multiple or chain shop arrangement, the main idea is to approach
the customers and not to draw the customers as it as is practiced in the case of
department store. In order to draw more customers, attempts are made to open a large
number of shops in the same city at different places. In India apt example for this
retail system are offered by 'Bata Shoes', 'Usha Sewing Machines' etc., such multiple
18. shops have 'centralised buying with deCentralized selling". Fundamentally, they
specialize in one product but with all its varieties or models. Chief Features of Chain
Stores The chief features of chain stores are:
i. One or more units may constitute a chain,
ii. They are centrally owned with some degree of Centralized control of
operation.
iii. They are horizontally 'integrated' that is, they operate multiple stores. With
addition of each new store, the system extends the reach to another group
of customers.
iv. Many stores are also 'vertically integrated'. They maintain large
distribution centres where they buy from producers, do their own
warehousing and then distribute their own stores.
Advantages of chain stores or multiple shops
i. Lower selling prices. This is mainly possible due to economy in buying
operation.
ii. Economy and advertising. Common advertisements covering all the units
are feasible and this reduces advertisement expenditure.
iii. Ability to spread risks. Unlike the department store the principle here is
not to "lay all the eggs in one basket". By trail and error, a unit sustaining
losses may be shifted to some other place or even dropped.
iv. There is flexibility in working.
v. Since it works only on cash basis, bad debts as well as detailed accounting
processes are avoided.
vi. Central and costly locations are not essential.
Limitations of chain stores or multiple shops
i. Lower price is a false claim. According to Stanton "Price Comparison is
19. not possible, as such stores are handling only limited items".
ii. Inflexible in practice. Multiple shops deal in standardised products onlywhich
creates inflexibility in offering wide varieties.
iii. Personnel Problems. Being a large organization, it is always susceptible to
problems associated with large scale business.
iv. Poor public image. Various consumer services such as credit facility, door
delivery etc. are completely absent in chain store. The present day consumers prefer
to have more services than quality in addition to desiring low prices.
Non-Store Retailing
A large majority - about - 80% - of retail transactions are made in stores. However,
a growing volume of sales is taking place away from stores. Retailing activities
resulting in transactions that occur away from a physical store are called non-store
retailing. It is estimated that non-store sales account for almost 20% of total retail
trade. Following are the five types of non store retailing: direct selling, tele
marketing, online retailing, automatic vending and direct marketing. Each type may
be used not just by retailers but by other types of organizations as well.
Direct Selling
In the context of retailing, direct selling is defined as personal contact between a
sales person and a consumer away from a retail store. This type of retailing has also
been called in home selling. Annual volume of direct selling in India is growing fast
from the beginning of the 21st century.
Like other forms of non-store retailing, direct selling is utilized in most countries. It
is particularly widespread in Japan, which accounts for about 35% of the worldwide
20. volume of direct selling. The U.S. represents almost 30% of the total and all other
countries the rest.
The two kinds of direct selling are door to door and party plan. There are many well
known direct-selling companies including Amway, Creative memories and Excel
communications. Diverse products are marketed through direct selling. This channel
is particularly well suited for products that require extensive demonstration.
Advantages of Direct Selling
i. Consumers have the opportunity to buy at home or at another convenient non
store location that provides the opportunity for personal contact with a sales
person.
ii. For the seller, direct selling offers the boldest method of trying to persuade
ultimate consumers to make a purchase.
iii. The seller takes the product to the shoppers home or work place and
demonstrates them for the consumer.
Limitations of Direct Selling
i. Sales commissions run as high as 40 to 50% of the retail price; of course,
they are paid only when a sale is made.
ii. Recruiting sales people - most of whom are part timers are difficult tasks,
iii. Some sales representatives use high pressure tactics or are fradulent.
Telemarketing.
Sometimes called telephone selling, telemarketing refers to a sales person initiating
contact with a shopper and closing a sale over the telephone. Telemarketing many
entail cold canvassing from the phone directory. Many products that can be bought
without being seen are sold over the telephone. Examples are pest control devices,
magazine subscriptions, credit cards and cub memberships.
21. Telemarketing is not problem free. Often encountering hostile people on the other
end of the line and experiencing many more rejections than closed sales, few
telephone sales representatives last very long in the job. Further some telemarketers
rely on questionable or unethical practices. For instance firms may place calls at
almost any hour of the day or night. This tactic is criticised as violating consumers'
right to privacy. To prevent this, some states have enacted rules to constrain
telemarketers' activities.
Despite these problems, telemarketing sales have increased in recent years.
Fundamentally, some people appreciate the convenience of making a purchase by
phone. Costs have been reduced by computers that automatically dial telephone
number, even deliver a taped message and record information the buyer gives to
complete the sale. The future of telemarketing is sure to be affected by the degree to
which the problems above can be addressed and by the surge of online retailing.
22. Online Retailing:
When a firm uses its website to offer products for sale and then individuals or
organizations use their computers to make purchases from this company, the parties
have engaged in electronic transactions (also called
on line selling or internet marketing). Many electronic transactions involve two
businesses which focuses on sales by firms to ultimate consumers. Thus online
retailing is one which consists of electronic transactions in which the purchaser is an
ultimate consumer.
Online retailing is being carried out only by a rapidly increasing number of new
firms, such as Busy.com, Pets Mart and CD Now.com. Some websites feature broad
assortments, especially those launched by general merchandise retailers such as
Wai-mart and Target. Some Internet only firms, notably Amazon.com are using
various methods to broaden their offerings.
Whatever their differences, e-retailers are likely to share an attribute. They are
unprofitable or best, barely profitable. Of course, there are substantial costs in
establishing an online operation. Aggressive efforts to attract shoppers and retain
customers through extensive advertising and low prices are also expensive. The
substantial losses racked by online enterprises used to be accepted, perhaps even
encouraged by investors and analysts. The rationale was that all available funds
should be used to gain a foothold in this growing market. Despite these challenges,
online retailing is expected to grow, rapidly and significantly for the foreseable
future. Online sales represented about 1% of retail spending in 2005, but one
research firm estimates that consumer purchases on the Internet with triple by the
year 2010.
23. Which product categories are consumers most likely to buy on the Internet in the
future? Consumers' shopping intentions in 2005 placed the following goods and
services at the tope of the list: books, music and videos, computer hardware and
software, travel and apparel. Of course, given that change on the Internet occurs,
these categories soon may be surpassed by others - perhaps groceries, toys, health
and beauty aids, auto parts or pet supplies.
Automatic vending
The sale of products through a machine with no personal contact between buyer and
seller is called automatic vending. The appeal of automatic vending is convenient
purchase. Products sold by automatic vending are usually well-known presold
brands with a high rate of turnover. The large majority of automatic vending sales
comes from the "4 c's" : cold drinks, coffee, candy and cigarettes.
Vending machines can expand a firm's market by reaching customers where and
when they cannot come to a store. Thus vending equipment is found almost
everywhere, particularly in schools, work places and public facilities. Automatic
vending has high operating costs because of the need to replenish inventories
frequently. The machines also require maintenance and repairs.
The outlook for automatic vending is uncertain. The difficulties mentioned above
may hinder future growth. Further, occasional vending-related scams may scare
some entrepreneurs away from this business. Vending innovations give reason for
some optimism. Debit cards that can be used at vending machines are becoming
more common. When this card is inserted into the machine, the purchase amount is
deducted from the credit balance. Technological advances also allow operators to
monitor vending machines from a distance, thereby reducing the number of out-of-
stock or out-of-order machines.
24. Direct Marketing
There is no consumers on the exact nature of direct marketing. In effect, it comprises
all types of non-store retailing other than direct selling, telemarketing, automatic
vending and online retailing. In the context of retailing, it has been defined as direct
marketing as using print or broadcast advertising to contact consumers who in turn,
buy products without visiting a retail store.
Direct marketers contact consumers through one or more of the following media:
radio, TV, newspapers, magazines, catalogs and mailing (direct mail). Consumer
order by telephone or mail. Direct marketers can be classified as either general -
merchandise firms, which offer a variety of product lines, or specialty firms which
carry - only one or two lines such as books or fresh fruit.
Under the broad definition, the many forms of direct marketing include:
• Direct mail - in which firms mail letters, brochures and even product samples
to consumers, and ask them to purchase by mail or telephone.
• Catalog retailing - in which companies mail catalogs to consumers or make them
available at retail stores.
• Televised shopping - in which various categories of products are promoted on
dedicated TV channels and through infomercials, which are TV commercials that
run for 30 minutes or even longer on an entertainment channel.
On the plus side, direct marketing provides shopping convenience. In addition, direct
marketers enjoy comparatively low operating expenses because they do not have the
overhead of physical stores.
Direct marketing has drawbacks. Consumers must place orders without seeing or
touching the actual merchandise. To off-set this, direct marketers must offer liberal
25. return policies. Furthermore, catalogs and to some extent, direct mail pieces are
costly and must be prepared long before they are issued. Price changes and new
products can be announced only through supplementary catalogs or brochures.
Direct marketing's future is difficult to forecast, given the rise of the Internet. The
issue is whether or not firms relying on direct marketing can achieve and sustain a
differential advantage in a growing competition with online enterprises.
Franchising
A franchising operation is legal contractual relationship between a franchiser (the
company offering the franchise) and the franchisee (the individual who will own the
business).
The terms and conditions of the contract vary widely but usually the franchiser offers
to maintain a continuing interest in the business of the franchisee in such areas as
the site selection, location, management, training, financing, marketing, record-
keeping and promotion. He also offers the use of a trade name, store motif
standardized operating procedure and a prescribed territory. In return the franchisee
agrees to operate under conditions set forth by the franchiser. For the manufacturers,
the franchising is beneficial in these directions:
i. it allows them to conserve capital.
ii. the distribution system is established in the shortest possible time,
iii. Marketing costs are lowest and
iv. Expenses of fixed overhead such as administrative expenses of the personnel
of the company owned units are cut down substantially.
Franchising exists in such products as soft drinks, automobiles and parts, business
services, dry cleaning etc. The franchisee should also:
i. make reference check from the financial institutions.
26. ii. make inquiries about the product, its quality, appeal, exclusiveness,
competitiveness and effectiveness in bringing in repeat customers.
iii. have enough capital to buy the franchise,
iv. be capable of taking supervision work.
v. consult the professionals and seek their guidance in legal matters,
vi. take risks and invest sufficient time.
Summary
Retailers may be classified by form of ownership and key marketing strategies.
Also, types of retailers distinguished according to product assortment, price and
customer service levels. Mature institutions such as department stores, discount
houses and super markets face strong challenges from new competitors, particularly
chain stores or multiple shops in various product categories.
Five major forms of non store retailing such as direct selling, telemarketing,
automatic vending, on line retailing and direct marketing are discussed in detail.
Each type has advantages as well as drawbacks. Franchising in particular, is growing
dramatically. In this lesson, all these are explained in detail.
27. Chapter 3
RETAIL STRATEGY
Overview:
In the last two lessons, we have seen the meaning of retailing, functions and
importance, and the overview of retailing. Further we have also seen various types
of In - store and non store retailing in general and department stores chain stores and
franchise in particular.
In this lesson we will look into the function of strategy, elements of retail strategy,
and achieving competitive advantage and positioning.
Function of a strategy
The primary purpose of a strategy is to provide a method, route, way or channel with
the clean direction to follow in managing a business over the planning period. A
successful strategy should satisfy three requirements.
(i) First, a strategy must help to achieve coordination among various functional areas
to the organization.
(ii) Second, strategy must clearly define how resources are to be allocated. At any
level of the organization, resources are limited. Strategy entails allocating resources
to achieve the goals set with in the time frame.
(iii) Third strategy must show how it can lead to a superior market position. A good
strategy takes cognizance of existing and potential competitors and their strengths
and weaknesses.
Retailers classified by marketing Strategies
Whatever its form of ownership, a retailer must develop marketing mix strategies to
succeed in its chosen target markets. In retailing, the marketing mix, emphasizes
product assortment, price, location, promotion and customer services designed to aid
28. in the sale of a product. They include credit, delivery, gift wrapping, product
installation, merchandise returns, store hours, parking and- very important personal
service.
We will now describe the classification of retail stores, paying particular attention
to the following three elements of their marketing mixes: • Breadth and Depth of
Product assortment • Price Level • Amount of customer services.
Stores of different sizes face distinct challenges and opportunities. Buying,
Promotion, Staffing and expense control are influenced significantly by whether
store's sales volume is large or small. Size of a retail business creates certain merits
and demerits which we have already discussed. Considering these factors, large
stores ordinarily - but not always - have a competitive advantage over small stores.
Small retailers face a variety of difficulties and many fail. The strong economy
during the second half of the 1990s helped small merchants hold their own, however.
In fact the number of failures was lower than last decade and just below the level at
the start of the decade.
How do small retailers succeed? They understand their target markets very well.
Then, in seeking to satisfy their consumers, they need to differentiate themselves
from large retailers. Here are two possible avenues not just to survival but to success.
Many consumers seek benefits that small stores often provide better than large
stores. For instance, some people seek high levels of shopping convenience. Small
outlets located near residential areas offer much convenience. Other consumers
desire abundant personal service. A small store's highly motivated owner-manager
and customer-oriented sales staff may surpass a large store on this important
shoppingdimension.
29. Numerous small retailers have formed or joined contractual vertical marketing
systems. These entities called voluntary chains or franchise systems - give members
some of the advantages of large stores, such as specialised management, buying
power and a well-known name.
OPERATING EXPENSES AND PROFITS
Total operating expenses for retailers average 28% of retail sales. In comparison
wholesaling expenses run about 11% of wholesale sales or 8% of retail sales. Thus
roughly speaking, retailing costs are about 2 l/2 times of the costs of wholesaling
when both are stated as a percentage of the sales of the specific type of middlemen.
Higher retailing costs are the result of dealing directly with ultimate consumers-
answering their questions, showing them different products and so on. Compared to
wholesale customers, ultimate consumers typically expect more convenient
locations with nicer decor, both of which drive up retailers' costs. Also relative to
wholesalers, retailers typically have lower total sales and lower rates of merchandise
turnover.
Retailers buy smaller quantities of merchandise, again compared to wholesalers, so
their overhead costs are spread over a smaller base of operations. Furthermore, retail
sales people often cannot be used efficiently because customers do not come into
stores at a steady rate.
COMPETITIVE ADVANTAGE WITH SPECIAL REFERENCE TO PHYSICAL FACILITIES
Another competitive advantage of retailers will be how they create physical facilities
which represent the distribution element of a retailer's marketing mix.
Some firms engage in non-store retailing by selling on hire or through catalogs or
door to door, for example-but many more firms rely on retail stores. Firms that
operate retail stores must consider four aspects of physical facilities.
30. LOCATION
It is frequently stated that there are three keys to success in retailing: Location,
Location, Location! Although overstated, this axiom does suggest the importance
that retailers attach to location. Thus a stores site should be the first decision made
about facilities. Considerations such as surrounding population, traffic and cost
determine where a store should be located. SIZE
This factor means the total square footage of the physical store, not the magnitude
of the firm operating the store. These are much different factors. A firm may be quite
large with respect to total sales, but each of its outlets may be only several thousand
square feet in size.
DESIGN
This factor refers to a stores appearance, both interior and exterior over its
competitor.
LAYOUT
The amount of space allocated to various product lines, specific locations of products
and a floor plan of display tables and racks comprise the store's layout.
As would be expected, the location, size, design and layout of retail stores are based
on where consumers live and how they like to go about their shopping.
Consequently, the bulk of retail sales occur in urban, rather than rural, areas. And
suburban shopping areas have become more and more popular, where as many down
town areas have declined.
ASSESSING COMPETITORS CURENT STRATEGIES
The first part in competitor analysis is to determine how competitors are attempting
to achieve their objectives. This question is addressed by examining their past and
current marketing strategies. MARKETING STRATEGY
31. Many authors have attempted to explain the concept of strategy. At the retail level,
a marketing strategy can be thought of three major components: target selection of
customers, core strategy (i.e. positioning and differential advantage), and
implementation (i.e. supporting marketing mix).
The first major component is the description of the market segment(s) to which
competing brands are being marketed. Market segments can be described in various
ways. Since few brands are truly mass marketed, the key is to determine which group
each competitor has targeted
The second strategy component is what is called the core strategy. This is the basis
on which the rival is competing, that is its key claimed differential advantage(s).
Differential advantage is a critical component of strategy because it usually forms
the basic selling proposition around which the brand's communications are formed.
It is also called the brand's positioning.
The final strategy component of competitors that must be assessed in the supporting
marketing mix. The mix provides insight into the basic strategy of the competitor
and specific tactical decisions. These decisions are what customers actually see in
the market place. In fact, customers are exposed to price, advertising, promotion and
other marketing mix elements.
32. TECHNOLOGY STRATEGY
An important task is to access the technological strategies of the major competitors.
This can be done by using the following framework of six criteria.
1. Technology selection or specialization.
2. Level of competence.
3. Sources of capability: Internal vs External
4. R&D investment level.
5. Competitive timing: Initiate vs Respond
6. Retail policies
These decisions generally lead to better understanding of retailers' competitors.